17th May 2023 15:05
(Alliance News) - MJ Hudson Group PLC on Wednesday confirmed the sale of its Data & Analytics division and set out its plan to cancel its shares from trading on AIM.
In April MJ Hudson had agreed to sell its Data & Analytics and Business Outsourcing divisions to Apex. It has now completed the sale of the Data & Analytics arm.
The cash consideration paid on the completion of the sale of the Data & Analytics division was GBP15 million, of which GBP3 million is being retained in escrow until September 30, 2024, to satisfy any buyer claims under the sale and purchase agreement.
Consideration for the Business Outsourcing division is about GBP25 million, payable in tranches on completion of the sale of the arm.
MJ Hudson noted that at March 31, it owed about GBP33.7 million. Therefore, the majority of the considerations paid for the divisions will go towards reducing the debt owed.
In addition, the company had received shareholder approval at a general meeting on May 3 to cancel the admission of its shares to trading on AIM. It is expected that the cancellation will occur on Thursday next week.
Earlier in February, Chief Executive & Founder Matthew Hudson quit as CEO, days after the company's auditor Ernst & Young LLP resigned citing "lost trust and confidence" in management. Hudson led the company since founding it in 2010.
MJ Hudson's shares were suspended from trading in December after the company was made "aware of…issues, including in relation to the reporting of historical trading of the business in relation to [fiscal year] 2022, the full impact of which is unclear."
By Sophie Rose, Alliance News reporter
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